Economy Update – Baghdad
Oil prices experienced a decline in early trading on Monday, continuing the downward trend observed throughout the previous week. This movement correlates with the potential resumption of exports from the oil fields located in the Kurdistan region of Iraq, while investors remain attentive to developments regarding the cessation of the ongoing conflict in Ukraine.
Brent crude futures fell by 20 cents, or 0.3%, reaching $74.23 per barrel by 01:13 GMT. Meanwhile, U.S. West Texas Intermediate crude futures decreased by 28 cents, or 0.4%, settling at $70.12 per barrel.
From a supply perspective, an official from the Iraqi Oil Ministry announced on Sunday that Iraq plans to resume production from the Kurdistan oil fields, aiming to deliver 185,000 barrels per day via the Iraqi-Turkish pipeline once oil shipments restart.
The Iraqi Ministry of Oil has confirmed that all preparatory measures have been finalized to facilitate the resumption of exports through the Iraqi-Turkish pipeline, potentially resolving a prolonged dispute that has persisted for nearly two years, during which time crude oil flows were significantly impacted.
Attention is also focused on the status of negotiations aimed at concluding the Russian conflict in Ukraine, which marks its fourth year today.
Officials have stated that European Union leaders will convene for an extraordinary summit on March 6 to deliberate on supplemental support for Ukraine and ensure European security guarantees.
This meeting follows discussions initiated by U.S. President Donald Trump regarding a resolution to the conflict, although these talks did not include representatives from Ukraine or the European Union.
Sanctions imposed by the United States and the European Union on Russian oil exports have curtailed shipments, leading to disruptions in maritime oil supplies. Should a peace agreement be established and sanctions lifted, global energy supplies are expected to receive a significant boost.
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